8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) March 14, 2012

THE PROGRESSIVE CORPORATION

(Exact name of registrant as specified in its charter)

Ohio	1-9518	34-0963169
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6300 Wilson Mills Road, Mayfield Village, Ohio 44143

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code 440-461-5000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

On March 14, 2012, The Progressive Corporation issued a news release containing financial results for the Company and its consolidated subsidiaries for the month of, and year-to-date period ended, February 2012. A copy of the news release is attached hereto as Exhibit 99.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

See exhibit index on page 4.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: March 14, 2012

THE PROGRESSIVE CORPORATION
By:	/s/ Jeffrey W. Basch
Name: Jeffrey W. Basch
Title: Vice President and             Chief Accounting Officer

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EXHIBIT INDEX

Exhibit No. Under Reg. S-K Item 601	Form 8-K Exhibit No.	Description
99	99	News release dated March 14, 2012, containing financial results of The Progressive Corporation and its consolidated subsidiaries for the month of, and year-to-date period ended, February 2012.

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EX-99

Exhibit 99

NEWS RELEASE

The Progressive Corporation	Company Contact:
6300 Wilson Mills Road	Matt Downing
Mayfield Village, Ohio 44143 http://www.progressive.com	(440) 395-4222

PROGRESSIVE REPORTS FEBRUARY RESULTS

MAYFIELD VILLAGE, OHIO — March 14, 2012 — The Progressive Corporation today reported the following results for February 2012:

(millions, except per share amounts and ratios; unaudited)	February 2012		February 2011		Change
Net premiums written	$	1,379.2	$	1,302.9		6	%
Net premiums earned	$	1,189.0	$	1,128.8		5	%
Net income	$	106.3	$	114.1		(7	)%
Per share	$	.17	$	.17		0	%
Total pretax net realized gains (losses) on securities (including net impairment losses)	$	29.4	$	23.6		25	%
Combined ratio		91.2		89.4		1.8 pts.
Average diluted equivalent shares		609.7		655.4		(7	)%

(thousands; unaudited)	February 2012		February 2011		Change
Policies in Force:
Agency – auto		4,772.4		4,557.4		5	%
Direct – auto		3,956.5		3,691.9		7	%
Total personal auto		8,728.9		8,249.3		6	%
Total special lines		3,801.3		3,619.9		5	%
Total Personal Lines		12,530.2		11,869.2		6	%
Total Commercial Auto		511.8		506.2		1	%

Progressive offers insurance to personal and commercial auto drivers throughout the United States. Our Personal Lines business writes insurance for personal autos and recreational vehicles. Our Commercial Auto business writes primary liability, physical damage, and other auto-related insurance for autos and trucks owned by small businesses.

See the “Comprehensive Income Statements” and “Supplemental Information” for further month and year-to-date information.

THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

COMPREHENSIVE INCOME STATEMENT

February 2012

(millions)

(unaudited)

	Current Month			Comments on Monthly Results1
Net premiums written	$	1,379.2
Revenues:
Net premiums earned	$	1,189.0
Investment income		36.5
Net realized gains (losses) on securities:
Other-than-temporary impairment (OTTI) losses:
Total OTTI losses		0
Non-credit losses, net of credit losses recognized on previously recorded non-credit OTTI losses		0
Net impairment losses recognized in earnings		0
Net realized gains (losses) on securities		29.4
Total net realized gains (losses) on securities		29.4
Service revenues		2.4
Total revenues		1,257.3
Expenses:
Losses and loss adjustment expenses		814.7
Policy acquisition costs		110.6
Other underwriting expenses		158.7
Investment expenses		.9
Service expenses		2.5
Interest expense		10.3
Total expenses		1,097.7
Income before income taxes		159.6
Provision for income taxes		53.3
Net income		106.3
Other comprehensive income, net of tax:
Net unrealized gains (losses) on securities:
Net non-credit related OTTI losses, adjusted for valuation changes		1.1
Other net unrealized gains (losses) on securities		62.4
Total net unrealized gains (losses) on securities		63.5
Net unrealized gains on forecasted transactions		(.1	)
Foreign currency translation adjustment		.3
Other comprehensive income		63.7
Total comprehensive income	$	170.0

¹  For a description of our reporting and accounting policies, see Note 1 to our 2011 audited consolidated financial statements included in our 2011 Shareholders’ Report, which can be found at www.progressive.com/annualreport.

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

COMPREHENSIVE INCOME STATEMENTS

February 2012 Year-to-Date

(millions)

(unaudited)

	Year-to-Date
	2012			2011			% Change
Net premiums written	$	2,837.5		$	2,677.9			6
Revenues:
Net premiums earned	$	2,652.5		$	2,524.6			5
Investment income		74.5			79.2			(6	)
Net realized gains (losses) on securities:
Other-than-temporary impairment (OTTI) losses:
Total OTTI losses		0			(.1	)		NM
Non-credit losses, net of credit losses recognized on previously recorded non-credit OTTI losses1		0			(.2	)		NM
Net impairment losses recognized in earnings		0			(.3	)		NM
Net realized gains (losses) on securities		41.3			56.2			(27	)
Total net realized gains (losses) on securities		41.3			55.9			(26	)
Service revenues		5.5			3.6			53
Total revenues		2,773.8			2,663.3			4
Expenses:
Losses and loss adjustment expenses		1,879.0			1,747.3			8
Policy acquisition costs		247.6			239.0			4
Other underwriting expenses		346.1			309.9			12
Investment expenses		2.6			2.0			30
Service expenses		5.2			2.7			93
Interest expense		21.5			21.0			2
Total expenses		2,502.0			2,321.9			8
Income before income taxes		271.8			341.4			(20	)
Provision for income taxes		90.5			114.7			(21	)
Net income		181.3			226.7			(20	)
Other comprehensive income, net of tax:
Net unrealized gains (losses) on securities:
Net non-credit related OTTI losses, adjusted for valuation changes		2.3			0			NM
Other net unrealized gains (losses) on securities		183.4			59.5			208
Total net unrealized gains (losses) on securities		185.7			59.5			212
Net unrealized gains on forecasted transactions		(.3	)		(.6	)		(50	)
Foreign currency translation adjustment		.6			.1			500
Other comprehensive income		186.0			59.0			215
Total comprehensive income	$	367.3		$	285.7			29

NM = Not Meaningful

¹  A negative amount for the period reflects credit losses reclassified from other comprehensive income that exceeded the amount of non-credit OTTI losses recognized in other comprehensive income during the period.

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

COMPUTATION OF NET INCOME AND COMPREHENSIVE INCOME PER SHARE

&

INVESTMENT RESULTS

February 2012

(millions – except per share amounts)

(unaudited)

The following table sets forth the computation of net income per share and comprehensive income per share:

	Current Month		Year-to-Date
			2012		2011
Net income	$	106.3	$	181.3	$	226.7
Per share:
Basic	$	.18	$	.30	$	.35
Diluted	$	.17	$	.30	$	.35
Comprehensive income	$	170.0	$	367.3	$	285.7
Per share:
Diluted	$	.28	$	.60	$	.44
Average shares outstanding—Basic		605.8		606.3		652.7
Net effect of dilutive stock-based compensation		3.9		3.8		4.0
Total equivalent shares—Diluted		609.7		610.1		656.7

The following table sets forth the investment results for the period:

	Current Month			Year-to-Date
				2012			2011
Fully taxable equivalent total return:
Fixed-income securities		.6	%		1.7	%		1.1	%
Common stocks		4.3	%		9.2	%		6.0	%
Total portfolio		1.1	%		2.6	%		1.5	%
Pretax annualized investment income book yield		3.0	%		3.0	%		3.3	%

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

February 2012

($ in millions)

(unaudited)

Current Month
	Personal Lines Business									Commercial Auto Business			Other Businesses1		Companywide Total
	Agency			Direct			Total
Net Premiums Written	$	691.8		$	556.7		$	1,248.5		$	130.7		$	0	$	1,379.2
% Growth in NPW		4	%		6	%		5	%		13	%		NM		6	%
Net Premiums Earned	$	603.8		$	466.2		$	1,070.0		$	118.9		$	.1	$	1,189.0
% Growth in NPE		4	%		7	%		5	%		9	%		NM		5	%
GAAP Ratios
Loss/LAE ratio		69.5			69.7			69.6			58.5			NM		68.5
Expense ratio		20.8			24.8			22.5			23.8			NM		22.7
Combined ratio		90.3			94.5			92.1			82.3			NM		91.2
Actuarial Adjustments2
Reserve Decrease/(Increase)
Prior accident years															$	16.7
Current accident year																2.7
Calendar year actuarial adjustment	$	8.1		$	4.7		$	12.8		$	6.6		$	0	$	19.4
Prior Accident Years Development
Favorable/(Unfavorable)
Actuarial adjustment															$	16.7
All other development																(28.7	)
Total development															$	(12.0	)
Calendar year loss/LAE ratio																68.5
Accident year loss/LAE ratio																67.5
Statutory Ratios
Loss/LAE ratio																68.6
Expense ratio																20.5
Combined ratio																89.1

¹ The other businesses generated an underwriting loss of $0.3 million for the month. Combined ratios and % growth are not meaningful (NM) due to the low level of premiums earned by, and the variability of loss costs in, such businesses.

² Represents adjustments solely based on our corporate actuarial reviews.

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

February 2012 Year-to-Date

($ in millions)

(unaudited)

Year-to-Date
	Personal Lines Business									Commercial Auto Business			Other Businesses1		Companywide Total
	Agency			Direct			Total
Net Premiums Written	$	1,411.2		$	1,138.0		$	2,549.2		$	288.3		$	0	$	2,837.5
% Growth in NPW		4	%		6	%		5	%		15	%		NM		6	%
Net Premiums Earned	$	1,347.1		$	1,038.9		$	2,386.0		$	266.2		$	.3	$	2,652.5
% Growth in NPE		4	%		6	%		5	%		8	%		NM		5	%
GAAP Ratios
Loss/LAE ratio		71.6			71.3			71.5			64.8			NM		70.8
Expense ratio		20.9			24.3			22.3			22.6			NM		22.4
Combined ratio		92.5			95.6			93.8			87.4			NM		93.2
Actuarial Adjustments2
Reserve Decrease/(Increase)
Prior accident years															$	20.7
Current accident year																3.4
Calendar year actuarial adjustment	$	9.5		$	7.2		$	16.7		$	7.4		$	0	$	24.1
Prior Accident Years Development
Favorable/(Unfavorable)
Actuarial adjustment															$	20.7
All other development																(32.5	)
Total development															$	(11.8	)
Calendar year loss/LAE ratio																70.8
Accident year loss/LAE ratio																70.4
Statutory Ratios
Loss/LAE ratio																70.9
Expense ratio																21.1
Combined ratio																92.0
Statutory Surplus															$	5,597.4

NM = Not Meaningful

¹ For the year, the other businesses generated an underwriting loss of $0.9 million.

² Represents adjustments solely based on our corporate actuarial reviews.

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THE PROGRESSIVE CORPORATION AND SUBSIDIARIES

BALANCE SHEET AND OTHER INFORMATION

(millions – except per share amounts)

(unaudited)

	February 2012
CONDENSED GAAP BALANCE SHEET:
Investments – Available-for-sale, at fair value:
Fixed maturities1 (amortized cost: $11,083.0)	$	11,439.5
Equity securities:
Nonredeemable preferred stocks1 (cost: $465.4)		868.7
Common equities (cost: $1,436.9)		2,019.9
Short-term investments (amortized cost: $1,770.1)		1,770.1
Total investments2, 3		16,098.2
Net premiums receivable		3,081.6
Deferred acquisition costs		436.2
Other assets4		2,283.5
Total assets	$	21,899.5
Unearned premiums	$	4,761.2
Loss and loss adjustment expense reserves4		7,276.6
Other liabilities3		1,620.1
Debt		2,092.4
Shareholders’ equity		6,149.2
Total liabilities and shareholders’ equity	$	21,899.5
Common shares outstanding		611.2
Shares repurchased – February		.3
Average cost per share	$	20.85
Book value per share	$	10.06
Trailing 12-month return on average shareholders’ equity
Net income		15.8	%
Comprehensive income		16.4	%
Net unrealized pretax gains (losses) on investments	$	1,336.2
Increase (decrease) from January 2012	$	97.7
Increase (decrease) from December 2011	$	285.7
Debt-to-total capital ratio		25.4	%
Fixed-income portfolio duration		1.8 years
Weighted average credit quality		AA-
Year-to-date Gainshare factor		1.20

¹  As of February 29, 2012, we held certain hybrid securities and recognized a change in fair value of $6.6 million as a realized gain during the period we held these securities.

² Includes $4.6 billion of short-term investments and U.S. Treasury securities prior to settling $17.6 million of net security transactions outstanding at month-end.

³ Includes $17.6 million of net unsettled security transactions (as discussed in note 2 above).

⁴ Loss and loss adjustment expense reserves are stated gross of reinsurance recoverables on unpaid losses of $779.1 million, which are included in “other assets.”

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Monthly Commentary

• The Company has no additional commentary regarding February results.

Events

We are currently scheduled to release March results on Wednesday, April 11, 2012, before the market opens.

About Progressive

The Progressive Group of Insurance Companies makes it easy to understand, buy, and use auto insurance. Progressive offers choices so consumers can reach us whenever, wherever, and however it’s most convenient for them—online at http://www.progressive.com, by phone at 1-800-PROGRESSIVE, or in-person with a local agent.

Progressive offers insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes. We’re the fourth largest auto insurer in the country, the largest seller of motorcycle insurance, and a leader in commercial auto insurance. Progressive also offers car insurance online in Australia at http://www.progressiveonline.com.au.

Founded in 1937, Progressive continues its long history of offering shopping tools and services that save customers time and money, like Name Your Price^®, the Snapshot Discount^®, and a concierge level of claims service.

The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, trade publicly at NYSE:PGR.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Statements in this release that are not historical fact are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. These risks and uncertainties include, without limitation, uncertainties related to estimates, assumptions, and projections generally; inflation and changes in economic conditions (including changes in interest rates and financial markets); the possible failure of one or more governmental entities to make scheduled debt payments or satisfy other obligations; the potential or actual downgrading of governmental, corporate, or other securities by a rating agency; the financial condition of, and other issues relating to the strength of and liquidity available to, issuers of securities held in our investment portfolios and other companies with which we have ongoing business relationships, including counterparties to certain financial transactions; the accuracy and adequacy of our pricing and loss reserving methodologies; the competitiveness of our pricing and the effectiveness of our initiatives to retain more customers; initiatives by competitors and the effectiveness of our response; our ability to obtain regulatory approval for requested rate changes and the timing thereof; the effectiveness of our brand strategy and advertising campaigns relative to those of competitors; legislative and regulatory developments, including, but not limited to, health care reform and tax law changes; disputes relating to intellectual property rights; the outcome of litigation pending or that may be filed against us; weather conditions (including the severity and frequency of storms, hurricanes, snowfalls, hail, and winter conditions); changes in driving patterns and loss trends; acts of war and terrorist activities; our ability to maintain the uninterrupted operation of our facilities, systems (including information technology systems), and business functions; court decisions and trends in litigation and health care and auto repair costs; and other matters described from time to time in our releases and publications, and in our periodic reports and other documents filed with the United States Securities and Exchange Commission. In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.

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